Overcoming Short-termism: A Call for a More Responsible Approach to Investment and Business Management

September 9, 2009

Twenty-eight leaders representing business, investment, government, academia, and labor joined the Aspen Institute Business & Society Program’s Corporate Values Strategy Group (CVSG) to endorse a bold call to end the focus on value-destroying short-termism in our financial markets and create public policies that reward long-term value creation for investors and the public good.

The statement, “Overcoming Short-termism: A Call for a More Responsible Approach to Investment and Business Management,” identifies three leverage points for encouraging a renewed focus on long-term value creation and for addressing one part of market short-termism, shareholder short-termism:

  • Market incentives: encourage more patient capital through tax policy
  • Alignment: better align the interests of financial intermediaries and their ultimate investors
  • Transparency: strengthen investor disclosures